I am performing Economics-Based Planning. On the Economic Assumptions for the Nominal Rates of Return for both Regular Assets and Retirement Accounts, I'd like to model the expectation of reduced returns over the next 10 years.
To illustrate, let's say my expectations on nominal returns to stocks are the following:
- over next ten years ~4% nominal
- over a 20+ year horizon ~6% nominal
To model this I have considered three approaches: